QUESTION 13 The CPI Company provided the following information: $50,000 $3,000 Beginning balances: Accounts receivable Allowances for doubtful accounts (credit balance) Transactions during the year: Sales revenue (of which 1/2 were on credit) Collections on accounts receivable Accounts written off as uncollectible $2,000,000 $980,000 $4,000 Past collection experience has indicated that 1% of credit sales normally is not collected. Therefore, an adjusting entry for bad debt expense should be made in the amount of: O a $500 b.$10,000 OC. $7.000 O d.$20.000